Today, in the city of Irkutsk, Alexander Ananenkov, Deputy Chairman of the Gazprom Management Committee and Vladimir Makeyev, Chairman of the Management Board of ITERA Oil & Gas Company have inked a Memorandum of cooperation regarding gas from the Bratsk gas and condensate field in the Irkutsk Oblast.

The Memorandum contemplates jointly implementing a range of measures within the General Scheme of gas supply to and gasification of the Irkutsk Oblast.

In particular, ITERA is committed to bringing onstream the Bratsk gas & condensate field as a hydrocarbon feedstock source for the regional gasification to 2008. The license for the field is held by Bratskecogas, a subsidiary of ITERA. Gas will be sold to Gazprom on the agreed terms.

In addition, the companies will jointly establish pertinent infrastructure to transport gas condensate from the field to consumers.

“The Memorandum signed today is an important step in the implementation of the General Scheme of gas supply to and gasification of the Irkutsk Oblast, and the fulfillment of the Russian Federation Government’s order prescribing Gazprom to become coordinator of gas projects in Eastern Siberia and the Far East. Gazprom and ITERA initiate a new phase of the socioeconomic development in the Irkutsk Oblast,” stressed Alexander Ananenkov.

“Joint employment of Gazprom and ITERA’s production resources and technologies for the gasification of the Irkutsk Oblast is in the best interests of both the two companies and the state,” noted Vladimir Makeyev.

Reference:

In accordance with the Russian Federation Government Decree #975-r of July 16, 2002, Gazprom has been entrusted with coordinating the implementation of the Program on setting up an integrated gas production, transmission and supply system in Eastern Siberia and the Far East, taking into account potential gas exports to China and other Asia Pacific countries.

The General Scheme of gas supply to and gasification of the Irkutsk Oblast was approved by the Decree of the Irkutsk authorities from December28,2005. The Scheme contemplates establishing in the Oblast a comprehensive gas production, transmission and supply system based on local hydrocarbon resources. The Scheme also prescribes providing gas supply to and gasification of the northern Irkutsk Oblast from existing medium- and small-sized fields. At an initial stage, the demand of consumers from the southern parts is met by gas from the South Kovykta field.

The Scheme enables to supply gas to 899 population centers in 32 areas of the Irkutsk Oblast and prescribes constructing gas mains, pipeline branches and distribution networks as well as shaping and developing the regional gas market. Gazprom has been appointed as the Scheme implementation operator. First gas deliveries to the region are planned in 2007.

Gazprom is the licensee for subsurface resources at the Western and Eastern blocks of the South Kovykta field.

OAO Gazprom and OOO ITERA Oil & Gas Company entered into an Agreement on partnership for 2006 to 2010 in June 2006. The Agreement contemplates promoting cooperation in a wide variety of matters including expanding, reconstructing and modernizing the Unified Gas Supply System of Gazprom as set out in the General Scheme for the gas industry’s development up to 2030; executing joint petrochemical projects; selling gas to Gazprom; supplying feedstock to Gazprom controlled processing facilities; ecology.

The Bratsk gas and condensate field is located 27 km of the town of Bratsk. Annual gas production from the field is projected to amount to 400 MMcm.